The best piece of advice I have received is from my father-in-law, "One house, one spouse, and compound interest."
- One house - The transaction cost of selling a house is roughly 6%. This eats a lot of the profit made from appreciation. Also if you stay in a house for 30 years and don't cash-out refinance, your house will be paid for. It can be either a retirement fund if you downsize or just a reduction in living expenses.
- One wife - This is pretty self explanatory but divorce takes 50% of the combined wealth. This is probably the largest reduction in wealth people can face. Also change wife to husband or partner as applicable, but it is wife for me :)
- Compound interest - "The most powerful force in the world is compound interest" - falsely attributed to Albert Einstein. Whether he actually said it or not is not the point. The point is a 5% increase every year for 30 years is a 332% increase. That sure is powerful.
Read other answers by Court Showerman on Quora:
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from Quora http://ift.tt/1Un1Yce
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